Merck Invests $1 Billion in New Delaware Plant

Merck, a prominent U.S. pharmaceutical manufacturer, revealed on Tuesday its plan to invest $1 billion in a new facility located in Delaware. This investment aims to amplify domestic production capabilities as the corporation navigates the implications of tariffs imposed by President Donald Trump.

The upcoming plant will be dedicated to the manufacturing of biologic drugs, including Keytruda. Notably, it will be Merck’s premier U.S.-based establishment for the in-house production of this widely used cancer treatment, according to the company’s statement.

Last week, Merck indicated that Keytruda represents its most significant exposure to tariffs, though the company maintains sufficient U.S. inventory to cover this year’s demand. The estimated additional costs associated with the existing levies amount to $200 million.

The company anticipates that the laboratories within the new facility will achieve full operational status by 2028, with the production of experimental drugs commencing by 2030.

According to Merck, the establishment of this new plant is projected to generate a minimum of 500 full-time positions and approximately 4,000 temporary construction jobs.

Just last month, Merck inaugurated a $1 billion facility at its North Carolina site, also intended to augment U.S. production capabilities.

The Trump administration has actively encouraged U.S. drug manufacturers to relocate their production processes to the United States. Furthermore, probes into drug imports have been initiated, potentially paving the way for the implementation of sector-specific levies.

In response to the looming threat of tariffs, several U.S. drugmakers, including Eli Lilly and Johnson & Johnson, have recently disclosed additional investments aimed at bolstering domestic production.